As expected, market is back near recent HIGHs but now what shall we expect next!!! Will this market just keep going higher OR will it turn around just the way it did last 2 times! Let's see if charts are providing any clues...
Below chart is providing some key information:
- Nifty well above MA(100) suggesting bullish trend
- McClellan index well above EMA(59) suggesting bullish bias
- Market is testing recent HIGHs for 3rd time, the more number of times a level is tested the higher is the probability of breaking that level.
Daily chart below suggest that market may have little room to run before pausing this rally.
Weekly chart remains bullish and RSI is yet to get overbought. MACD cross over is bullish as PPO remains above zero mark.
We expect market to go sideways or trade in range for a while (few days to weeks) once it tags the 8900-9000 area. Once a successful breakout above 9000 area occurs then DO NOT expect the rally to slow down, everyone will try to jump in causing stampede and that is where market will make quick gains in short amount of period. We told you, get ready for the ride ahead...
Market in strong bullish mode...
Market in strong bullish mode...